The higher a government budget deficit is the more likely
A) The risk of default on sovereign debt.
B) Economic growth is to stall.
C) That interest rates will remain stable over the long run.
D) The economic cycle will be predictable over a period.
E) It is that tax rates in the country will remain low.
Correct Answer:
Verified
Q27: When a government fails to balance its
Q28: The size of the output gap depends
Q29: An accounting practice whereby a firm values
Q30: A cyclical deficit occurs where government income
Q31: The response of central banks to the
Q33: A sovereign debt crises is when:
A) Any
Q34: Sovereign deficits are financed by
A) Governments printing
Q35: The output gap refers to:
A) The difference
Q36: During a severe downturn in the economy,
Q37: The securitization of assets relies on:
A) Banks
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